Ark7 vs RealT

When it comes to building wealth through rental real estate, U.S. investors face a fundamental choice between traditional fractional ownership platforms and blockchain-based tokenization models. While Ark7 offers SEC-qualified, accessible property shares with monthly cash distributions starting at just $20, RealT utilizes cryptocurrency tokens on blockchain networks with higher potential yields but significant complexity barriers. For American investors seeking passive income without crypto complications, this comparison reveals why Ark7’s regulated, user-friendly approach delivers superior accessibility and peace of mind compared to RealT’s current inaccessibility to U.S. residents.

Key Takeaways

• Ark7 delivers immediate U.S. investor access while RealT remains unavailable – All U.S. investors can participate in Ark7’s SEC-qualified offerings with standard bank transfers, while RealT currently blocks U.S. resident access entirely
• Regulatory clarity favors Ark7’s SEC Regulation A+ framework – Ark7 operates under clear U.S. securities regulations with Dalmore Group LLC as FINRA-registered broker-dealer, while RealT’s blockchain tokenization faces evolving regulatory uncertainty
• Simplified user experience drives Ark7 adoption – Ark7’s mobile app earns 4.7 ratings with intuitive property discovery and investment management, while RealT requires crypto wallet setup and blockchain knowledge
• Tax efficiency makes Ark7 ideal for retirement planning – Ark7 provides standard 1099 tax forms and IRA compatibility through Inspira Financial Company, while RealT creates complex crypto and foreign real estate tax reporting requirements
• Consistent monthly income prioritizes reliability over maximum yield – Ark7 delivers predictable 4.42% annualized dividend return rate, while RealT’s 9-16% yields come with higher volatility and execution complexity

Understanding Each Platform’s Core Positioning

Ark7 positions itself as the accessible gateway to rental real estate investing for everyday Americans. Founded in 2018 and headquartered in San Francisco, Ark7 has built a platform serving 220,000+ active investors with $23+ million in property value funded. The company operates exclusively within the U.S. market, offering SEC-qualified fractional ownership in carefully curated single-family and multi-family rental properties. Invest in rental homes – share by share isn’t just a slogan—it’s Ark7’s mission to democratize real estate wealth building through transparent, regulated securities.

RealT takes a fundamentally different approach, leveraging blockchain technology to tokenize real estate ownership. Founded in 2019 and based in Boca Raton, Florida, RealT has tokenized 970+ properties and distributed $29+ million in rental income since its inception. However, as of 2025, RealT explicitly blocks U.S. resident access to its platform, focusing instead on international investors who can navigate cryptocurrency wallets and blockchain networks. RealT’s model appeals to crypto-savvy investors seeking higher yields through decentralized finance (DeFi) integration, but creates significant barriers for traditional U.S. investors.

The core difference lies in accessibility philosophy: Ark7 simplifies real estate investing to be as easy as stock investing, while RealT requires embracing cryptocurrency complexity as a prerequisite.

Service Offerings Reveal Fundamental Accessibility Differences

Ark7’s investor-friendly platform includes:

• Fractional property shares starting at $20-100 per share in U.S. rental properties
• Monthly cash distributions averaging 4.42% annualized yield in 2025
• Fully managed properties with professional tenant screening, maintenance, and operations
• Mobile app experience with 4.7 iOS and 4.2 Android ratings for on-the-go investing
• IRA compatibility allowing tax-advantaged real estate investing through Inspira Financial Company
• Secondary market liquidity after 12-month holding period through PPEX ATS
• Transparent financial reporting with 24/7 access to property performance and legal documents

This comprehensive approach eliminates landlord responsibilities while providing passive income access to investors with minimal capital requirements.

RealT’s blockchain-based offerings focus on tokenized ownership:

• Real estate tokens starting at ~$10-50 per token on Ethereum and Gnosis networks
• Weekly stablecoin payouts with reported yields ranging from 9-16% gross
• DeFi integration allowing tokens to be used as collateral for loans or staking rewards
• Global property access including U.S. and international markets (except for U.S. residents)
• On-chain transparency with all transactions verifiable through blockchain explorers
• Decentralized exchange trading through platforms like Uniswap and Swapcat

However, RealT’s model requires significant technical knowledge: investors must set up cryptocurrency wallets, manage private keys, pay variable gas fees, and navigate complex tax implications from both foreign real estate ownership and cryptocurrency transactions.

For U.S. investors seeking straightforward real estate exposure, Ark7’s traditional securities approach eliminates the learning curve and technical barriers that make RealT inaccessible to the American market.

Pricing Models Reflect Different Investor Priorities

The fee structures reveal each platform’s target audience and value proposition.

Ark7’s transparent pricing includes:

• 3% sourcing/acquisition fee on property value (one-time)
• 8-15% property management fee of rental income (monthly)
• No transaction fees on primary offerings
• No hidden fees – consistent with Ark7’s brand promise of transparency
• Standard tax reporting with 1099 forms for simplified accounting

RealT’s crypto-based structure involves:

• Undisclosed acquisition/service fees (not publicly detailed)
• Variable blockchain gas fees depending on network congestion
• 2.5-3.9% marketplace fees on secondary trading platforms
• Complex tax preparation costs estimated at $200-500 annually for crypto and foreign real estate reporting
• Wallet setup and maintenance technical requirements

When calculating total cost of ownership for a $10,000 investment, Ark7’s predictable fee structure results in approximately $660-1,075 in first-year costs, delivering net returns of roughly 3.5-4.5%. RealT’s higher gross yields of 9-16% are partially offset by complexity costs, but the fundamental barrier remains: U.S. investors cannot currently access RealT at all, making the comparison largely theoretical for the American market.

Ark7’s value proposition centers on accessibility over maximum yield—providing reliable, tax-efficient returns without cryptocurrency complications or regulatory uncertainty.

Target Customers Highlight Strategic Market Alignment

Ark7 primarily serves U.S. retail investors seeking passive income through real estate:

• Everyday Americans with limited capital who want exposure to rental properties
• Retirement-focused investors utilizing IRA accounts for tax-advantaged growth
• Beginners to real estate investing who appreciate the 4.7 mobile app experience
• Conservative investors prioritizing regulatory compliance and simplicity
• Busy professionals who want passive income without landlord responsibilities

Ark7’s user base of 220,000+ investors demonstrates strong market acceptance of its accessible approach to fractional real estate ownership.

RealT targets international, crypto-savvy investors comfortable with blockchain technology:

• Global investors outside the United States seeking U.S. real estate exposure
• DeFi participants looking to use real estate tokens as collateral or for staking
• High-yield seekers willing to accept complexity for potentially higher returns
• Cryptocurrency natives already familiar with wallet management and gas fees
• Sophisticated investors comfortable with complex tax reporting requirements

The critical limitation for U.S. investors is clear: RealT explicitly blocks American resident access as of 2025. This regulatory positioning makes Ark7 the only viable option for U.S. citizens seeking fractional real estate investment through these two platforms.

Performance Metrics Demonstrate Reliability vs. Complexity Trade-offs

Both platforms showcase strong performance data, but with different risk profiles.

Ark7’s consistent performance includes:

• 4.42% annualized dividend yield in 2025
• 93.24% portfolio occupancy rate as of November 2025
• 7.65% top-performing property yield (Urbana-S11, November 2025)
• Monthly distribution consistency with no reported payment defaults
• $2.5+ million in cash dividends distributed to investors

RealT’s higher-potential returns feature:

• 6-16% gross rental income range depending on property selection
• 9-12% average yields reported by user reviews
• Weekly stablecoin distributions providing more frequent income
• $29+ million in rental income distributed since 2019
• 970+ tokenized properties offering broad selection (for eligible investors)

The performance difference reflects fundamental platform philosophies: Ark7 prioritizes predictable, reliable returns with transparent reporting, while RealT offers higher yield potential at the cost of increased complexity and regulatory uncertainty. For U.S. investors, Ark7’s consistent monthly distributions provide the passive income stability that aligns with long-term wealth building goals.

Methodology and Approach Define the Investor Experience

Ark7’s methodology centers on accessibility and transparency:

• AI-driven property sourcing combined with local market expertise
• End-to-end property management eliminating landlord responsibilities
• Series LLC structure providing legal separation between properties
• SEC Regulation A+ qualification ensuring regulatory compliance
• Mobile-first platform design with intuitive user experience
• Community-focused approach with 243 Trustpilot reviews averaging 4.2/5

Ark7’s approach reflects its mission: “We believe everyone should have the freedom to build wealth through real estate.”

RealT’s blockchain methodology emphasizes decentralization:

• Tokenization through ERC-20 standards on Ethereum and Gnosis networks
• Smart contract automation for rental income distribution
• Decentralized identity verification through wallet-based KYC
• On-chain transaction transparency with public blockchain records
• DeFi protocol integration for advanced financial applications
• Global market focus with international property access

However, RealT’s methodology creates significant barriers for traditional investors: cryptocurrency wallet management, gas fee optimization, private key security, and complex tax reporting requirements. These technical hurdles explain why RealT remains inaccessible to U.S. residents, while Ark7 has successfully onboarded 220,000+ American investors.

Regulatory Framework and Compliance Considerations

Ark7’s regulatory advantages for U.S. investors include:

• SEC Regulation A+ qualification providing clear securities compliance
• FINRA-registered broker-dealer (Dalmore Group LLC) ensuring oversight
• SIPC membership providing additional investor protections
• Standard securities documentation with offering circulars filed with the SEC
• IRA compatibility through established custodial relationships
• U.S.-only operations eliminating foreign regulatory complications

RealT’s regulatory challenges include:

• Evolving blockchain tokenization regulations with uncertain legal status
• U.S. investor inaccessibility due to regulatory compliance concerns
• Cross-border tax reporting complexity for international property ownership
• Cryptocurrency regulatory uncertainty in multiple jurisdictions
• Lack of traditional securities oversight compared to SEC-qualified platforms

For U.S. investors prioritizing regulatory clarity and investor protections, Ark7’s SEC-qualified structure provides significant peace of mind compared to RealT’s blockchain-based approach operating in regulatory gray areas.

Liquidity and Exit Options Comparison

Both platforms offer secondary market options, but with different accessibility levels.

Ark7’s liquidity structure:

• 12-month minimum holding period before shares can be traded
• PPEX ATS secondary market operated by North Capital Private Securities Corporation
• SEC-registered alternative trading system providing regulated resale venue
• Electronic share issuance with no physical certificates required
• Potential illiquidity risk as secondary market activity may vary

RealT’s token liquidity:

• Immediate trading availability on decentralized exchanges (DEX)
• No formal holding periods for token sales
• Market-dependent liquidity based on DEX trading volume
• Whitelisting requirements for certain trading platforms
• Gas fee impact on small transaction economics

While RealT offers more immediate liquidity theoretically, the practical reality for U.S. investors is that neither platform’s secondary market is accessible—Ark7 due to the 12-month hold requirement, and RealT because U.S. residents cannot invest in the first place. Ark7’s regulated approach provides more predictable liquidity expectations, while RealT’s DEX trading introduces additional volatility and complexity.

Why Ark7 Delivers Superior Value for U.S. Real Estate Investors

U.S. investors seeking fractional real estate exposure face a clear choice: Ark7’s regulated, accessible platform or RealT’s currently inaccessible blockchain model. For American investors, Ark7 represents the only viable option between these two platforms.

Key advantages of Ark7’s approach:

• Immediate U.S. market access – All U.S. investors can participate with standard bank transfers and no cryptocurrency requirements

• Regulatory certainty – SEC Regulation A+ qualification provides clear legal framework and investor protections that blockchain tokenization cannot match

• Simplified tax reporting – Standard 1099 forms eliminate the complex crypto and foreign real estate tax complications that RealT creates

• Retirement account compatibility – IRA integration through Inspira Financial Company enables tax-advantaged real estate investing unavailable through crypto platforms

• Proven user experience – 4.7 mobile app rating demonstrates successful execution of the “as easy as stock investing” promise

• Consistent income reliability – Monthly distributions with 94.81% occupancy rates provide predictable passive income streams

For U.S. investors committed to building wealth through real estate, Ark7’s combination of accessibility, regulatory compliance, and user-friendly design makes it the superior choice over RealT’s currently inaccessible blockchain model. While RealT may appeal to international, crypto-savvy investors seeking higher yields, American investors benefit from Ark7’s focus on simplicity, transparency, and regulatory clarity.

Frequently Asked Questions

What is the minimum investment required for Ark7 and RealT fractional properties?

Ark7 offers property shares starting at $20-100 per share, making real estate investing accessible to investors with limited capital. RealT tokens start at approximately $10-50 per token, providing even lower entry points theoretically. However, RealT is currently unavailable to U.S. residents, making Ark7’s $20 minimum the only practical option for American investors. This accessibility aligns with Ark7’s mission to make real estate investment available to everyone, regardless of their initial capital position.

How do I earn passive income from investments on these platforms?

Ark7 investors receive monthly cash distributions averaging 4.4-4.5% annualized yield in 2025, paid directly to their account from actual rental income. RealT distributes rental income weekly in stablecoins with reported yields ranging from 9-16% gross. However, RealT’s crypto-based distributions require wallet management and create complex tax reporting situations, while Ark7’s standard bank deposits provide simple, predictable passive income. For U.S. investors, RealT remains currently inaccessible, making Ark7 the only viable passive income option between these platforms.

Can I sell my shares or tokens if I need to access my capital?

Ark7 investors can sell their shares on the PPEX ATS secondary market after a 12-month minimum holding period, subject to market availability and regulatory restrictions. RealT token holders can theoretically trade immediately on decentralized exchanges like Uniswap, but this requires cryptocurrency wallet management and may involve significant gas fees. U.S. investors cannot currently access RealT, making Ark7’s secondary market the only viable liquidity option between these platforms for American investors. Both platforms involve substantial illiquidity risk that investors should carefully consider.

What are the main risks associated with fractional real estate investing?

Both platforms involve substantial risks including illiquidity, lack of diversification, and potential complete loss of capital. Ark7 investments are speculative securities with no guarantee of returns, and investors must be prepared to hold shares indefinitely due to potential secondary market limitations. RealT adds additional risks including cryptocurrency volatility, blockchain network failures, regulatory uncertainty, and complex foreign tax implications. Ark7’s SEC Regulation A+ qualification provides some regulatory oversight, while RealT’s blockchain model operates in evolving legal frameworks with less investor protection clarity.

How do Ark7 and RealT compare in terms of fees and transparency?

Ark7 maintains a transparent fee structure with a 3% property sourcing fee and 8-15% property management fees, with no hidden charges consistent with their “no hidden fees, no surprise ever” promise. RealT’s fee structure is less transparent, with undisclosed acquisition fees and variable blockchain gas costs that can significantly impact returns. Ark7 provides 24/7 access to complete financial and legal documentation, while RealT’s on-chain transparency requires blockchain expertise to interpret effectively. For U.S. investors prioritizing fee clarity and regulatory compliance, Ark7’s transparent approach provides significant advantages.

Is fractional real estate investing suitable for retirement accounts?

Ark7 offers IRA compatibility through Inspira Financial Company, allowing investors to purchase property shares within Traditional or Roth IRA accounts for tax-advantaged growth. This feature enables long-term retirement planning with tangible real estate assets while maintaining standard IRA contribution limits and rules. RealT’s cryptocurrency-based model is generally incompatible with traditional retirement accounts because most mainstream custodians don’t support direct crypto on crypto assets in IRAs and complex tax reporting requirements. For retirement-focused investors, Ark7’s IRA integration provides a significant advantage for building tax-efficient real estate wealth over time.